He told the Commons: "The new structure will bring the operation of track and train closer together.

"Too often under the present system companies have been able to pass the buck for poor performance.

"So in future, Network Rail will be responsible for ensuring that the network delivers a reliable service through an agreement with the government."

The reorganisation would "put the railways on a stable long-term footing and tackle the remaining flaws left from privatisation".

The main points of the White Paper are:

Strategic Rail Authority to be abolished after four years

Most powers will be with transport secretary

Network rail takes full responsibility for maintaining a reliable service

Safety function goes from HSE to Office of Rail Regulation

Number of franchises reduced

Considerable devolved powers to Scotland over rail

More powers for Wales and English regional bodies

Mayor gets responsibility for all trains in Greater London

Community railway lines will be put on a "better financial footing"

Under the new proposals, Network Rail would be responsible for timetabling, use of routes and enforcing the punctuality of train companies.

Responsibility for safety on the railways would move from the Health and Safety Commission's (HSC) executive arm - the Health and Safety Executive (HSE) - to the Office of Rail Regulation.

HSC chairman Bill Callaghan said: "The commission is naturally disappointed with this decision. It is our firm belief safety regulation should be independent of its industry and any regulator should have teeth to be able to enforce measures where necessary."